Important points about the classic model, Macroeconomics

Assignment Help:

Q. Important points about the classic model?

The most important points about the classic model are as following: 

  • Monetary and fiscal policy can't affect the GDP or unemployment in classical model.
  • In the classical model can no nominal variables affect a real variable. Price level that is a nominal variable, for illustration, does not affect consumption, which is a real variable. It is called classic dichotomy.

 


Related Discussions:- Important points about the classic model

Describe the structural unemployment, Describe the Structural unemployment ...

Describe the Structural unemployment Individuals who are unemployed as their skills are no longer in demand where they live. This kind mainly results in longer spells and may r

Unemployment, critically analyse the ways at which the govement of zimbabwe...

critically analyse the ways at which the govement of zimbabwe has put in place to address unequal employment opportunitiesbetween men andwomen

Compute the equilibrium level as-ad model, 1 . Use the AS/AD model to a...

1 . Use the AS/AD model to a . Demonstrate graphically and explain verbally the situation the US economy is currently in. b. In the diagram you drew for part (a) above, sh

Project to build a factory, Suppose there are two investors. One has a proj...

Suppose there are two investors. One has a project to build a factory; the other has a project to visit casino and gamble on roulette. Which investor has a greater incentive to iss

Neo-classical theory of trade, explain the neo-classical theory of trade an...

explain the neo-classical theory of trade and show the difference between this and the classical approach, as wellas the similarities

Accounting system-example iii, ACCOUNTING SYSTEM-EXAMPLE III  Now suppo...

ACCOUNTING SYSTEM-EXAMPLE III  Now suppose the Jam Co. manufactures some herbal chemicals and flavors which it sells partly to Extracts Co., partly to Bottling Co., some are co

Problem sets #2, I want to know price and estimate time on this assignment....

I want to know price and estimate time on this assignment.

What is money wage rate, What is money wage rate While the money wage ...

What is money wage rate While the money wage rate or nominal wage rate is the hourly wage rate calculated in money that a worker receives for supplying labour, the real wage r

Phillips curve in lowland, The Phillips curve in Lowland takes the form of ...

The Phillips curve in Lowland takes the form of ? = 0.04 - 0.5 (u - 0.05), where ? is the actual inflation rate and u is the unemployment rate. The Phillips curve in Highland takes

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd